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Categories of government expenditure

Answer Text:
Public/government expenditure:
Categories of government expenditure:
a. Recurrent expenditure
-This refers to government spending that takes place regularly e.g. payments of salaries to civil servants, fuelling of government vehicles e.g.
-Every financial year, the government must allocate
funds to meet such expenditure.
-Recurrent expenditure is also known as consumption expenditure.
b. Development expenditure
This is also referred to as capital expenditure .It is government spending on projects that facilitate economic development. Such projects includes construction of railway
lines, roads, airports, rural electrification e.t.c Once completed expenditure on such projects ceases and may only require maintenance.
c. Transfer payments
This is expenditure on things/people who do not directly contribute to a country’s national income. Such expenditure include money spent on famine
relief, pension, bursaries e.t.c